I read a month ago that they were reducing the principal by up to 30% of the principal. Is this reduction part of the HARP 2.0?

This is definitely not a part of HARP 2.0 and principle reductions are not guaranteed. Furthermore, the big 4 banks would only move forward on principle reductions when the loan is not owned by Fannie Mae or Freddie Mac. In other words, the loan would have had to originate with them and they would have maintained on their books as a portfolio loan. Hope that clarifies things for you and Happy 1st Day of Spring.

Actually Principal reduction first rolled out under FHA's Short Refinance Program. The biggest problem with its success has been that the banks only seem willing to reduce principal when they can do it and hurt the borrower. They are willing to allow you to sell for less than what you owe, which forces you to have to move, but they won't allow you to stay and reduce the loan balance even $100 for you. There has been a lot of talk about this, but nothing has come of it, yet. My guess is that until the Government is willing to pay the banks dollar for dollar for your principal reduction, they just won't do it. That said, it is possible that someday, such a program may happen. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com

Principal reduction has nothing to do with HARP 2.0... and the pricipal reduction is an If/Come/Maybe... It was part of a major bank settlement, but they are not required to do principal reductions.. that was just one suggestion... so I wouldnt hold my breath... WilliamAcres.com